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Media WASHINGTON—The
United States federal government has paved the way for banks to do business
with drug dealers who specialize in selling marijuana by issuing guidelines
that financial institutions should follow.

The Financial Crimes Enforcement Network (FinCEN), in coordination with the U.S. Department of Justice (DOJ), issued guidance
on Friday
that clarifies customer due diligence expectations and reporting
requirements for financial institutions seeking to provide services to
marijuana businesses.

The guidance provides that financial institutions
can provide services to marijuana-related businesses in a manner
consistent with their obligations to know their customers and to report
possible criminal activity.

"Now that some states have elected to legalize and regulate the
marijuana trade, FinCEN seeks to move from the shadows the historically
covert financial operations of marijuana businesses," noted FinCEN
Director Jennifer Shasky Calvery. "Our guidance provides financial
institutions with clarity on what they must do if they are going to
provide financial services to marijuana businesses and what reporting
will assist law enforcement."

In
2012, Colorado became the first state to approve marijuana for recreational
use. Banks have since sought a mechanism to handle the newly approved marijuana
drug-dealing business. Add
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